St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-12-31


Illinois, commissioners to carry on the
investigation. Two reports have been
submitted to the presidential majority
report by Messrs. Anderson and Littler,
and minority report by Mr.. Pattison.
THE MAJORITY REPORT
opens with a statement of the methods
pursued by the commissioners, showing
the labOriOus nature of the work, and
setting forth that owing to the fact that
none of the reports was completed be-
fore the month of November, and that
the final report and tables affecting the
Union Pacific railway were not received
until near the close of that month, it was
impossible to make any critical eXami-
nation of the results reached by the ac-
cOuntants and inspecting engineer of
the commission. These accountants
were Richard f. Stevens and William
Calhoun, the engineer being Col. Rich
itself examined the directors and
officers of the respective roads and all
witnesses whom they judged possessed
of knowledge of the subject matter of
the investigation. They Subdivide the
report into three parts: The first part
relates to the present condition of the
companies, their relations with the
United States and the remedial meas
ures to be adopted; the second part re-
vieweS the financial operations of the
companies, and the third part contains
answers to the various interrOgatiOnS
contained in the bill under which the
commission was constituted
PART FIRST.
The Union Pacific railway is first con-
sidered; its total mileage, exclusive of
branches, being stated at 1,S15.17 miles,
including railways formerly known as
the Kansas Pacific and ID nver Pacific,
while the total mileage of the connect
ing branches, according to the. COM
pany'S report for 1856, is 2.761.93 miles.
1t is explained that the United States
subsidy bonds did not apply to the ell
tire lengths of these roads. On the
Union Pacific they were issued from
Omaha to a point 3.97 miles west of
Council Bluffs to point five miles west
OF Ogden, Utah: on the Kansas Pacific,
from point half a miles west of Kan
sas City, Mo, to a point distant there
from westerly 1884 miles. The origi
nal location of the Kansas Pacific was
altered to allow it to extend direct to
Denver, instead of interSecting the
Union Pacific at the Tooth meridian, but it
was entitled entirely to the same amount
of bonds that it would have been al
lowed under the original location. The
commissioners find that these roads
''are fully provided with terminal facil
tiles, side tracks, station houses and
railway equipment, and, with the eX-
cepti0n of the shops, machines and tools
at Omaha, represent Well-built and
weli-eQuipped property, which is fully
able to discharge all the services that
may be required of it.
THE TOTAL FUNDED DEBT
of the Union Pacific Railway company
on Dec. 81, 1856. exclusive of the Obliga-
tons TO the United States, is placed at
SS1, 1863. 1880. of which $50, 532, 600 was
prior to the United States statutory
lien. The balance of this debt, S4S,-
437, 27.50, is then described. 1t is stated
that the Union Pacific railway
commission has issued $4,000, 900
bonds on its main line, which are
subsequent to the lien of the United
States, S35, 1874 900 thereof being covered
by securities other that of the main line
itself, such as land grant and sinking
fund bonds, etc. And from this it APP
pears that a mortgage executed to-day
to the United States would be subject to
the burden of about S13.000.000 in addi-
ton to the first mortgage and the debt
due the United States.
The debt of the Union Pacific Rail-
way company to the United States as
existing to-day is substantially as fol-
lows:
The Union Pacific Railroad. S27, 236 81 90
The Kansas facific Pailroad.. 6,303, 10000
The Union Pacific Railroad,
interest accrued to Nov. l,
1857, but not due. -. 5000, 1853
The Kansas Pacific Railroad,
interest accrued to Nov. 1,
1887, but not due. ......... 1,I6S, 1900
Total ...................S7 SIS, SAT, $685. 80
The amount in United States
bond and interest account
for both companies is. SIS, 40, S91 81
The amount in sinking fund
account to Nov. l, 1887, is 1874, 0S4. 80
S23, LA 976.2 20
So that the present balance
of obligations of the Union
Pacific railway is 49,. $50, III ,992. SO
This amount should not be cOnfOund-
ed with the present value of the debt,
for the reason that the United States is
under the obligation of continuing the
payment of 6 per cent on the OutStand-
ing subsidized bonds until their matur-
ity, and the company is liable to refuse
such payments at the maturity of the
bonds.
The principal of dept of
Union Pacific and Kansas
Pacific is. ...................S 3S,3S9,5 l2.O0
Add $50 per cent interest. -. 90 .371, 12l 90
Total debt at maturity -. 1913, 91O, 633 60
Deduct amount to credit of
both companies in bond and
interest account Nov. l.
1857 ..Sl0,04O. cJI.94
Balance at maturity of
bonds. ....................SI SIS, 1863, 741 66
The average date of maturity of the
debt of both companies is July 10, 1897:
SIS, 1863, 741.66, discounted at
per cent compound, is. 49,. SOS. 491, 256
De duet amount IN sinking fund 1874, OS3
Present value 500, 757, US
This result is only intended as an ap-
Proclamation to explain the operation of
the bills herewith submitted, and will of
course be altered if actually applied at
the date named in those bills.
The requirements under the prOviS-
ions of the mortgage proposed by the bill
would be as follows for the first ten
years:
Three per cent of s5o,757,.
OUD .Si .OZZ,I4U w
one-half of 1 per cent of out
standing bonds. 253,7s5 90
Total 81, 776 495 90
And after the expiration of ten years
the annual requirements would be
81, 030, 2S0.
THE CENTRAL PACIFIC
is next taken up, its subsidized portion
being from a point five miles west of
Ogden, Utah, TO Sacramento City, CAL,
a distance of 1880 miles, and from
Sacramento City to San Jose formerly
known as the Western Pacific, at the
south end of the Bay of San Francisco,
a distance of 1876 miles. 1.-The total
amount of the subsidy was ST.
S55,6SO. The additions to the company
by consultations and extensions
is explained, and its present mileage is
placed at 1857 % miles, of which SCOTT
are subsidized and 1852 unSubSidiZed.